For Most Products, It Is Difficult to Identify a Specific

question 186

Multiple Choice

For most products, it is difficult to identify a specific market price for a product or product class. Still, marketing managers often have a subjective feel for the competitors' price or market price. Using this benchmark, they then may deliberately choose a strategy of

• A) above-, at-, or below-market pricing.
• B) loss-leader pricing.
• C) penetration pricing.
• D) standard markup pricing.
• E) experience-curve pricing.

---

Definitions:

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change despite changes in price.

Excise Tax

A tax imposed on the sale of specific goods and services, such as tobacco, alcohol, and gasoline.

Marginal Rate

The rate at which the cost or value of something changes with a one-unit increase in quantity or production.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.